GST Rate Changes On Host Of Items To Be Applicable From 18 July. Check Complete List Here

The report of the GoM (Group of Ministers) on casinos, online gaming and horse racing back will be sent back to the panel for further deliberation

The GST Council's decision regarding goods and services tax (GST) rate change on host of items will take effect from 18 July, while online retailers will get relief on registration requirements on par with brick-and-mortar traders with effect from 1 January, 2023, said Union Finance Minister Nirmala Sitharaman after a two-day meeting of the GST Council that concluded on Wednesday, reported news agency PTI.

The Council accepted recommendations for rate rationalisation suggested by different groups appointed by it, resulting in tax changes. However, the report of the GoM (Group of Ministers) on casinos, online gaming and horse racing back will be sent back to the panel for further deliberation as the finance minister of Goa has been seeking further discussions on GST rate to be applicable on casinos. The panel had recommended 28 per cent GST levy on all three activities by bringing them on par with gambling. The report may be completed by July 15 and considered in the Council’s next meeting in August.

Lits of items attracting GST

With the exemption ending on certain items, pre-packed and labelled meat (except frozen), fish, paneer, lassi, honey, dried leguminous vegetables, dried makhana, wheat and other cereals and puffed rice (muri) will attract a 5 per cent tax.

Similarly, an 18 per cent GST will be levied on Tetra Paks and fees charged by banks for the issue of cheques (loose or in book form). Maps and charts including atlases will attract a 12 per cent levy. Goods that are unpacked, unlabelled and unbranded will continue to remain exempt from GST.

Apart from that a 12 per cent tax will be levied on hotel rooms costing less than Rs 1,000 a day while 5 per cent GST will be levied on hospital room rent above Rs 5,000 per day(excluding ICU).

Also, note that the tax rates have been increased to 18 per cent on products such as printing, writing or drawing ink; knives with cutting blades, paper knives and pencil sharpeners; LED lamps, drawing and marking out instruments.

Solar water heater will now attract 12 per cent GST as compared to 5 per cent earlier.

While services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums too will now attract up to 18 per cent from the current 12 per cent.

Services rendered by regulators such as RBI, IRDA and SEBI will be now be taxed and the same will be levied on renting of a residential dwelling to business entities.

Also, electric vehicles whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5 per cent.

Items to attract lesser tax now

The tax on the transport of goods and passengers by ropeways has been slashed to 5 per cent and on ostomy appliances to 5 per cent from 12 per cent.

While renting of truck, goods carriage where the cost of fuel is included will now attract a lower 12 per cent rate as against 18 per cent.

The GST exemption on the transport of passengers by air to and from north-eastern states and Bagdogra has now been limited to economy class.

The GST council also decided to ease process for intra-state supplies made through e-commerce portals. Now such suppliers will not have to obtain GST registration, if their turnover is lower than Rs 40 lakh and Rs 20 lakh for goods and services, respectively. This would come into effect from january 1, 2023.